Jabil Circuit posts weak revenue outlook

CassandraJaramillo

Jabil Circuit Inc. on Wednesday posted a weak revenue outlook for its fourth quarter and said its third-quarter revenue rose but was near the bottom end of its own projections. Profit, meanwhile, declined sharply.

Shares of the electronics maker slipped 6% to $22.87 a share in after-hours trading. Through Wednesday's close, Jabil's stock had risen more than 20% in the past 12 months.

For the current quarter, the company said it expects earnings to be 27 cents to 38 cents a share, or core earnings of 40 cents to 50 cents a share, on revenue of $ 4.45 billion to $4.65 billion. Analysts polled by Thomson Reuters project earnings of 47 cents a share on revenue of $4.74 billion.

Overall, for the period ended May 31, Jabil reported a profit of $72.2 million, or 37 cents a share, compared with a year-earlier profit of $188.3 million, or 93 cents a share. Excluding costs related to stock-based compensation and restructuring expenses, Jabil's profit was 49 cents a share, compared with a year-earlier loss of 6 cents. Revenue rose 15% to $4.36 billion.

Jabil had previously forecast third-quarter core earnings of 43 cents to 55 cents a share on revenue of $4.35 billion to $4.55 billion.

Gross margin improved to 8.6% from 5.7% a year earlier.

For the 2015 fiscal year, the company affirmed its guidance.

Founded in 1966, the contract electronics manufacturer makes products for tech companies like Apple Inc., Cisco Systems Inc. and Hewlett-Packard Co. Last year, Jabil expanded its operations in Chengdu, China, and recently said that it plans to construct new facilities in Malaysia in the second half of 2016.

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